Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Boden. July 1 Purchased merchandise from Boden Company for $6,200 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $517. July 3 Paid $130 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,500 for $1,900 cash. July 9 Purchased merchandise from Leight Company for $2,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $600 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. July 12 Received the balance due from Creek Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Boden Company within the discount period. July 19 Sold merchandise that cost $800 to Art Company for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $200 to Art Company for merchandise sold on July 19 and credited Art's accounts receivable for that amount. July 24 Paid Leight Company the balance due, net of discount. July 30 Received the balance due from Art Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $5,000 to Creek Company for $7,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. View transaction list View journal entry worksheet No Date General Journal 1 July 01 Merchandise inventory Accounts payable-Boden 2 July 02 Accounts receivable-Creek Sales Debit Credit 6,200 6,200 950 950 3 July 02 Cost of goods sold 517 Merchandise inventory 517 4 July 03 Merchandise inventory Cash 130 130 5 July 08 Cash Sales 1,900 1,900 6 July 08 Cost of goods sold 1,500 Merchandise inventory 1,500 7 July 09 Merchandise inventory 2,600 Accounts payable-Leight 2,600 8 July 11 Accounts payable-Leight 600 Merchandise inventory 600 9 July 12 Cash Sales discounts Accounts receivable-Creek 10 July 16 No Transaction Recorded 11 July 19 No Transaction Recorded 12 July 19 No Transaction Recorded 13 July 21 No Transaction Recorded 14 July 24 No Transaction Recorded 15 G July 30 No Transaction Recorded 16 July 31 No Transaction Recorded 17 July 31 No Transaction Recorded 600